The price of arable land in Bulgaria are lower in comparison with the prices of other EU member countries. I expect that the price of land in the country will increase gradually over the next five years. The prices of arable land will grow at an average annual rate of at least 20%,“ Vesselin Petrov, executive director of Elana Property Management, said yesterday at a seminar organized by the German-Bulgarian Chamber of Industry and Commerce.

We should bear in mind that Romania and Ukraine, who's land attracts strong investor interest, are also in the region, Petrov said answering to a question as to why the prices in Bulgaria will no grow at a higher pace.

The price of arable land has risen by nearly 40% to an average of 350 leva per decare over the last few years, according to Petrov. A similar sharp increase is not healthy and is based on high expectations, Petrov added.

The development of the market in recent years may be put down to the entry of large-scale investors into the segment, as well as to the higher sales prices asked by the land owners.

Elana Property Management forecasts that the average price of arable land in Bulgaria may reach 500 leva per decare by 2010.

As far as the ground rent is concerned, the price may grow to an average of 30-35 leva per decare by 2010 – 2011, Petrov said.

The members of the Bulgarian association of land owners have also agreed to start exchanging land plots with the purpose of consolidating the land, Petrov added.

The prices of land in countries, such as the Czech Republic, Poland and Slovakia are similar to these in Bulgaria and stand at under 500 leva per decare, Elana Property Management data shows.

With nearly 5,500 leva per decare Belgium has the most expensive arable land, the statistical data from 11 European countries shows. Denmark and Ireland follow with 4,500 and 3,000 leva per decare, respectively.

Photo: Vesselin Petrov, executive director, Elana Property Management (Class Daily)